If an Economist of the Rational Expectations School Were Advising

question 3

Multiple Choice

If an economist of the rational expectations school were advising a policy maker,the advice most likely to be given would be:

• A)Don't use discretionary policy if recognition lags are long.
• B)Don't use discretionary policy if activity lags are long.
• C)Don't use fiscal policy if effectiveness lags are long.
• D)Don't use monetary policy if implementation lags are long.
• E)Don't use discretionary policy.

---

Definitions:

Human Resources Outsourcing (HRO)

The practice of contracting out HR functions to external providers, allowing organizations to focus on core activities.

Outsourcing

Outsourcing is the business practice of hiring external parties to perform services or create goods that were traditionally performed in-house by the company's own employees and staff.

Performance Management

The ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization.

Employee Relations

The management of the relationship between employers and employees, focusing on maintaining healthy, productive, and legally compliant interactions.